Canada`s Bank of Nova Scotia has announced the opening of a new Fintech facility, where technologies such as blockchain and artificial intelligence will be developed, as reported by Yahoo Finance (finance.yahoo.com).

The decision comes as a response to growing competition in the Fintech sector. The new Fintech facility would support the bank`s aim to become a leader in the field, said Shawn Rose, Scotiabank`s executive vice president of digital banking in an interview with Yahoo Finance.

Canada`s largest banks are investing hundreds of millions of dollars in new technologies as customers turn to online banking, explained Yahoo Finance.

“It’s accelerating, that competitive fear. We don’t want to lose a day. It’s critical. The people we hire, they need a place to establish these routines”, added Rose as quoted by Yahoo Finance.

In early January 2017, Reuters (reuters.com) reported that investments in Canadian financial technology have increased dramatically in 2016. PitchBook, used by the US-based National Venture Capital Association, has found that venture capital investments in Canadian Fintech have increased with up to more than 35 percent as compared to five years ago.

At the same time, Canada`s Bank of Nova Scotia has launched financial technology hubs in other countries like Mexico, Peru, Chile and Columbia (Pacific Alliance).

“It’s potentially more important for us to do this at the Pacific Alliance … These Pacific Alliance countries are outpacing the mothership”, explained the bank as cited by Yahoo Finance.

Moving back to Canada, it is believed that the country may soon be one of the top countries in the financial technology sector, as stated by cryptocoinnews.com. With the UK leaving the EU and the single market, Toronto may replace London as a leading financial hub.